Probably but Arkansas was a Top 10 team that year and Penn State actually had a loss didn't they? I think Alabama hammered them in the regular season that year.
Their schedules were both very good. SMU might have even played a slightly tougher one that season. I just cant see a 1-loss team getting it over a 1-tie team with how comparable their schedules were. I sure wish we could have seen them play.
Their schedules were NOT comparable. Penn State was the right choice. SMU's schedule makes any of the recent Boise State teams look like they played a Murderer's Row.
1982-Southern Methodist (SWC)
9/11 vs. Tulane (4-7) W 51 7
9/18 @ Texas-El Paso (2-10) W 31 10
9/25 vs. *Texas Christian (3-8) W 16 13
10/2 vs. North Texas (2-9) W 38 10
10/9 @ *Baylor (4-6-1) W 22 19
10/16 vs. *Houston (5-5-1) W 20 14
10/23 @ *Texas (9-3) W 30 17
10/30 vs. *Texas A&M (5-6) W 47 9
11/6 @ *Rice (0-11) W 41 14
11/13 @ *Texas Tech (4-7) W 34 27
11/20 vs. *Arkansas (9-2-1) T 17 17
1/1 vs. Pittsburgh (9-3) W 7 3 @ Dallas, TX Cotton Bowl
11-0-1 354 160
They played three good-but-not-great teams and went 2-0-1, neither of the two wins decisive by any means. And they barely beat four bad teams.
Here was Penn State's schedule:
1982-Penn State (Independent)
9/4 vs. Temple (4-7) W 31 14
9/11 vs. Maryland (8-4) W 39 31
9/18 vs. Rutgers (5-6) W 49 14
9/25 vs. Nebraska (12-1) W 27 24
10/9 vs. Alabama (8-4) L 21 42 @ Birmingham, AL
10/16 vs. Syracuse (2-9) W 28 7
10/23 @ West Virginia (9-3) W 24 0
10/30 @ Boston College (8-3-1) W 52 17
11/6 vs. North Carolina State (6-5) W 54 0
11/13 @ Notre Dame (6-4-1) W 24 14
11/26 vs. Pittsburgh (9-3) W 19 10
1/1 vs. Georgia (11-1) W 27 23 @ New Orleans, LA Sugar Bowl
11-1-0 395 196
Penn State handed Nebraska and Georgia their only losses; either would have won the title had they not lost to Penn State. Penn State beat Pitt by more points than SMU did. Penn State played just three teams with losing records, SMU played eight.
There was very little controversy about this at the time. It was recognized that Penn State had played a much tougher schedule. If SMU had beaten Arkansas and finished 12-0, they would have won the title. But with that weak of a schedule, they had to go 12-0.